Total Signs 40-Year Offshore Concession Agreements for US$1.4 billion
Total SA has signed two new 40-year concession agreements with the Supreme Petroleum Council of the Emirate of Abu Dhabi and the Abu Dhabi National Oil Company (ADNOC).
As part of the deals, Total has been granted a 20 percent interest in the Umm Shaif & Nasr concession and a five percent stake in the Lower Zakum concession offshore Abu Dhabi, effective the 9th March, for a total participation fee of $1.45 billion.
Located about 83 and 40 miles off the coast, respectively, Umm Shaif and Lower Zakum account for around 20 percent of Abu Dhabi production. The new interests will provide Total with additional production of 80,000 barrels of oil per day.
In addition to the Umm Shaif and Lower Zakum agreements, Total has also extended its concession with ADNOC in the offshore Abu Al Bu Koosh field, operated by Total with a 100 percent interest, for three more years. This field produces approximately 10,000 barrels per day.
“These agreements represent another major milestone in our long-standing partnership with Abu Dhabi and ADNOC that dates back to 1939,” Patrick Pouyanné, chairman and CEO of Total, said.
Following the signing of the agreements, the Total CEO also took to Twitter to express his pride at Total becoming ADNOC’s largest international partner.
Ahmed Al Jaber, ADNOC CEO, said the agreements mark an important step to further strengthen ADNOC’s ‘value-adding partnership with one of the world’s largest integrated upstream and downstream companies.’
Earlier this month Eni SpA announced that it had signed agreements to acquire a five percent stake in the Lower Zakum offshore oil field and a ten percent stake in the oil, condensate and gas offshore fields of Umm Shaif and Nasr. These agreements are for a duration of 40 years and include a total participation fee of around US$875 million.
Source: Rigzone